What does fee-only mean?

Fee-only financial planners are compensated solely by client fees and do not accept commissions or compensation from any other source. In contrast, commission-based or commission and fee-basedplanners are compensated entirely or in part on commissions from products recommended and sold. Both commission and commission and fee-based planners have an incentive to invest their clients’ money in products that pay the highest commissions. Athena Financial Group believes there is a significant conflict of interest if investment decisions or lack thereof, are motivated or influenced by the commissions related to any investment transaction.

How does Athena Financial Group set fees?

We charge a flat fee for our initial comprehensive financial plan. Should we then manage a client’s portfolio, our fees are based on a percentage of the assets managed. We have a strong incentive to minimize your trading costs and fund management expenses and to maximize your portfolio value. Our fees can only grow when your investments grow.

Financial advisors operate under one of three basic compensation structures: commission, fee-and-commission, and Fee-Only. 

Advisors compensated by commissions are salespersons whose pay is based on the products their clients buy.  Sales persons’ “perks”, in addition to pay, can also detract from commissioned advisors’ independence and objectivity. 

Fee-and-commission advisors receive fees from the client for their recommendations, plus commissions for the products the client purchases; they get paid for their biased advice and again for the implementation of that advice.  This compensation structure is often called fee-based . 

An advisor selling products and receiving any commissions has limited objectivity and independence. 

We do not sell any products or receive commissions of any type from any source.  Our advice is objective and independent; our interests are aligned exclusively with our clients’ interests.

Are there any other fees I will have to pay?

As part of the asset management process, you will have to pay two additional types of fees—mutual fund fees and transaction fees. First, all mutual funds (even no-load funds) charge management fees and other expenses to pay for the costs of running their funds. These expenses are clearly outlined in a fund’s prospectus, which you should review before you invest in the fund. Since Athena Financial Group primarily uses low cost passively managed funds , you will pay far lower fund management fees (compared with actively managed funds). Second, you will pay transaction fees (for buying and selling securities and mutual funds) to the brokerage firm that you choose to hold, or custody, your assets.

Depending mainly on the size of your portfolio, your total annual fees (including our fees, mutual fund expenses, and transaction fees) will probably range between 1.3% and 1.8% of your invested assets. When you compare these fees with the total costs that you would pay at full-service brokerage firms (where costs can exceed 3%), you should get pretty excited by the potential savings! Keep in mind that we also provide comprehensive financial planning throughout the year as part of our asset management service.

“Growing numbers of consumers are looking for Fee-Only planners.  They are generally considered more objective than those who earn their living from sales commissions.  Fee-Only planners charge purely for advice.” 
          - Finance Author Jane Bryant Quinn

  “With a Fee-Only advisor you can see what the total bill is; with a fee-and-commission advisor, the costs may look smaller but can be the same or higher than Fee-Only advice.” 
          - Wall Street Journal

  “Avoid advisors who earn commissions on products they sell.” 
          - Business Week

“My choice would be a Fee-Only planner.” 
          - Newsweek

“Use a planner whose self-interest is aligned exclusively with your own… Consumer Reports continues to believe that Fee-Only planners remain your best option.” 
          - Consumer Reports